Tax Refund

Tune in at Noon today for TPC’s Prescription with Jacob Bastian on the Child Tax Credit. The Rutgers economist’s research concludes that the child tax credit can significantly reduce poverty without reducing incentives to work. Not all agree with his conclusions. He’ll discuss them today at Noon. Register and tune in here. 

Why make it harder to file tax returns and easier to cheat?  TPC’s Howard Gleckman is puzzled by the House Republicans’ top legislative priority is to reverse nearly all of the 2021 Inflation Reduction Act’s  $80 billion,10-year increase in the IRS budget. Republicans underperformed in 2022 House races and failed to win the Senate because independents largely stuck with Democratic incumbents. Howard concludes, “Making your first priority legislation to make life harder for ordinary taxpayers and easier for tax cheats doesn’t seem an especially effective way to win over swing voters.”

And why cut the IRS budget, given former President Trump’s tax returns? TPC’s Steve Rosenthal, writing for The Washington Post, says Trump’s returns are exactly why the IRS needs an upgrade. Trump paid little federal income tax in large part because he manufactured losses. But the IRS failed to audit Trump in part because it lacks the skills and resources. The IRS, Steve concludes, “needs to be significantly bolstered to discourage cheating on taxes, no matter how sophisticated the dodge.”

Does your dog have a license? Did you pay a tax for one?  Many of the nation’s 88 million dogs are unlicensed, sometimes because owners don’t bother but often because they resist paying the accompanying tax. TPC’s Tax Hound considers the choices dog owners make when it comes to that nominal tax, or fee. 

For the first time, Texas gives property breaks to people with disabilities and those over age 65. Senate Bill 12, which passed in 2021, just took effect. It limits the amount of property tax that school districts can impose on those over age 65 or with a disability.  

Indians move billions of virtual dollars to international exchanges to avoid a new crypto tax. Last February, the country announced a 30 percent tax on crypto profits and a 1 percent tax on crypto transactions. Since then, Indians moved over $3.8 billion in trading volume from local to untaxed international exchanges.

The Daily Deduction will resume publication on Monday, Jan. 9.

For the latest tax news, subscribe to the Tax Policy Center’s Daily Deduction. Sign up here to have it delivered to your inbox weekdays at 8:00 am (Mondays only when Congress is in recess). We welcome tips on new research or other news. Email Renu Zaretsky at [email protected].

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